Bill Ackman Has Built A Large Citigroup Stake (C)

Noted activist investor and hedge fund manager Bill Ackman presented at the Ira Sohn Conference last night. Ackman runs Pershing Square Capital Management, and has made numerous prescient calls over the last couple of years. For example, last year at the same conference, Ackman said that he was bullish on shares of General Growth Properties (NYSE: GGP). At the time, the company was in bankruptcy and the equity was trading for under $1. Today, GGP shares are worth $14 apiece.

The Ira Sohn Conference brings together some of the top hedge fund managers in the world, where they share some of their highest conviction investment ideas. It has become a "must attend" event on Wall Street. All proceeds generated by the conference are donated to charity.

Last night at the conference, Ackman revealed that he has accumulated around 150 million Citigroup (NYSE: C) shares in recent weeks. This is a very popular position in the hedge fund world right now, with numerous managers loading up on C shares. During the current trading session, the stock has gained 3.63% to $3.99.

The risk/reward in this name certainly makes it compelling, as the stock has lost nearly 92% of its value over the last 5 years, and at $4 per share, Citi is a leveraged way of playing the global economic recovery. The U.S. government is currently in the process of unloading their substantial stake in the company, and many investors believe that once this is complete, it will catalyze a move higher in the name.

If you want to go long Citi (C) along with some of the world's top hedge fund managers, be prepared for volatility. The stock has a beta of 2.77 and small changes in the shares price can add up to big gains and losses in a short period of time. Year to date, C has jumped 20.69%, but fallen 7.95% in the last month.